International Marketing

Topic:
Canada
Submitted To:
Sir Arsalan
Submitted By:
Syed Amad Wajid

11032120-156

Hafiz Abdul Mateen

11032120-111

Muhammad Murtaza Butt

11032120-128

Adnan Anwar

11032120-094

Anila Ishtiaq

11032120-159

Section BA
BBA
7th Semester
Date: 16-12-2014
History:

The first inhabitants of Canada were native Indian peoples, primarily the Inuit (Eskimo). The
Norse explorer Leif Eriksson probably reached the shores of Canada (Labrador or Nova Scotia)
in 1000, but the history of the white man in the country actually began in 1497, when John
Cabot, an Italian in the service of Henry VII of England, reached Newfoundland or Nova Scotia.
Canada was taken for France in 1534 by Jacques Cartier. The actual settlement of New France,
as it was then called, began in 1604 at Port Royal in what is now Nova Scotia; in 1608, Quebec
was founded. France's colonization efforts were not very successful, but French explorers by the
end of the 17th century had penetrated beyond the Great Lakes to the western prairies and south
along the Mississippi to the Gulf of Mexico. Meanwhile, the English Hudson's Bay Company
had been established in 1670. Because of the valuable fisheries and fur trade, a conflict
developed between the French and English; in 1713, Newfoundland, Hudson Bay, and Nova
Scotia (Acadia) were lost to England. During the Seven Years' War (17561763), England
extended its conquest, and the British general James Wolfe won his famous victory over Gen.
Louis Montcalm outside Quebec on Sept. 13, 1759. The Treaty of Paris in 1763 gave England
control.

Geography:
Covering most of the northern part of the North American continent and with an area larger than
that of the United States, Canada has an extremely varied topography. In the east, the
mountainous maritime provinces have an irregular coastline on the Gulf of St. Lawrence and the
Atlantic. The St. Lawrence plain, covering most of southern Quebec and Ontario, and the interior
continental plain, covering southern Manitoba and Saskatchewan and most of Alberta, are the
principal cultivable areas. They are separated by a forested plateau rising from Lakes Superior
and Huron.
Westward toward the Pacific, most of British Columbia, the Yukon, and part of western Alberta
are covered by parallel mountain ranges, including the Rockies. The Pacific border of the coast
range is ragged with fjords and channels. The highest point in Canada is Mount Logan (19,850
ft; 6,050 m), which is in the Yukon. The two principal river systems are the Mackenzie and the
St. Lawrence. The St. Lawrence, with its tributaries, is navigable for over 1,900 mi (3,058 km).

Culture:
Canadian culture is a term that explains the artistic, musical, literary, culinary,
political and social elements that are representative of Canada, not only to its own population,
but people all over the world. Canada's culture has historically been influenced by European
culture and traditions, especially British and French. Over time, elements of the cultures of
Canada's Aboriginal peoples and immigrant populations have become incorporated into
mainstream Canadian culture. It has subsequently been influenced by American culture because
of its proximity and migration between the two countries.

Government
Canada is a federation of ten provinces (Alberta, British Columbia, Manitoba, New Brunswick,
Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and
Saskatchewan) and three territories (Northwest Territories, Yukon, and Nunavut). Formally
considered a constitutional monarchy, Canada is governed by its own House of Commons. While
the governor-general is officially the representative of Queen Elizabeth II, in reality the
governor-general acts only on the advice of the Canadian prime minister.
Economy
As an affluent, high-tech industrial society in the trillion dollar class, Canada resembles the US
in its market-oriented economic system, pattern of production, and affluent living standards.
Since World War II, the impressive growth of the manufacturing, mining, and service sectors has
transformed the nation from a largely rural economy into one primarily industrial and urban. The
1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade
Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and
economic integration with the US. Given its great natural resources, skilled labor force, and
modern capital plant, Canada enjoys solid economic prospects. Top-notch fiscal management has
produced consecutive balanced budgets since 1997, although public debate continues over how
to manage the rising cost of the publicly funded healthcare system. Exports account for roughly a
third of GDP. Canada enjoys a substantial trade surplus with its principal trading partner, the US,
which absorbs more than 85% of Canadian exports. Canada is the US' largest foreign supplier of
energy, including oil, gas, uranium, and electric power.
Exports:
$364.8 billion f.o.b. (2005 est.)
Exports - commodities:
motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment;
chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity,
aluminum
Exports - partners:
US 85.1%, Japan 2.1%, UK 1.6% (2004)
Imports:
$317.7 billion f.o.b. (2005 est.)
Imports - commodities:
machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable

consumer goods
Imports - partners:
US 58.9%, China 6.8%, Mexico 3.8% (2004)
Trade In Canada:
In 2013 Canada was the EU's 12th most important trading partner, accounting for 1.7% of the
EU's total external trade. In the same year the EU was Canada's second most important trading
partner, after the U.S., with around 9.8% of Canada's total external trade.
The value of bilateral trade in goods between the EU and Canada was 58,8 billion in 2013.
Machinery, transport equipment and chemicals dominate the EU's exports of goods to Canada,
and also constitute an important part of the EU's imports of goods from Canada.
Trade in services is an important area of the EU-Canada trade relationship. The value of bilateral
trade in services between the two partners amounted to 26.9 billion in 2012. Examples of often
traded services between Canada and the EU are transportation, travel, insurance and
communication.
The investment relationship is equally highly important. In 2011, European investors held
investments worth 258.0 bn in Canada while Canadian direct investment stocks in the EU
amounted to almost 142.6 bn.
Trade barriers:
When exporting to the European Union (EU), there may be obstacles that make trade more
complicated and expensive. They are often referred to as trade barriers. Such barriers to trade
can take many forms, and the problems may stem from the European Union as well as from the
exporting country.
Examples of trade barriers are:

Customs duties
Charges on imports (import charges, import deposit schemes, minimum price systems,
taxes, other border charges)
Quantitative import restrictions (quotas) and other measures with equivalent effect
(quantitative restrictions, surveillance systems, administrative measures and
requirements)
Technical barriers to trade (technical regulations, administrative and other noncompulsory provisions)
Export restrictions
Government subsidies

Complicated procedures for the registration of a new business

Dumped and subsidized imports
Price compensation measures

Evaluation of Challenges in Canada:

The world is going through a major economic and political transformation the likes of which
have not been seen before. World economic growth is higher than it has been for over 30 years,
yet the international community and the world economy is becoming increasingly fragmented.
We are in a global maelstrom, in which the only constant is change.
The former head of the World Bank, James Wolfensohn, recently observed: While being more
interconnected, it (the world) is now rapidly breaking into four tiers of varying levels of
prosperity and hope. The first tier consists of the rich countries, which maintain 80 per cent of
the global income while accounting for only 20 per cent of the worlds population. Their
dominance is being contested by the emerging economies, comprising the second tier of
approximately 30 poor and middle income countries that are experiencing sustained growth rates
of 7 per cent or more a year.
Emerging economies, such as China, India and Brazil, with their large pools of inexpensive
labour, are becoming increasingly important in the world economy. The emerging economies
now represent roughly 50% of global GDP, using Purchasing Power Parity exchange rates. Asia
already represents around 20 per cent of global GDP. The projected economic growth rates in
major emerging markets for 2007 are in the order of: China - 10%, India - 7.5% and Brazil - 4%.
With prosperity and economic growth also comes a demand for commodities. For example,
from 2002 to 2005, China accounted for more than one-quarter of the increase in global oil
demand and nearly 80 per cent of the increase in global demand for all base metals. Already,
China and India account for nearly 5 per cent and 2 per cent of world GDP, respectively, at
current exchange rates.
As their per capita production and consumption approach levels similar to those of the developed
economies, major effects on the global economic landscape will be seen. There is a growing
middle class in those countries demanding sophisticated goods similar to those being demanded
in the developed countries. Reliable projections forecast that China will grow at an annual
average of 6.6 percent from 200520 (an aggregate increase in output of 162 per cent), and India
at a rate of 5.5 per cent a year (an aggregate increase in output of 124 per cent).
These emerging economies are learning how to leverage the global economy. A multi-polar
world is emerging, with China and India as major economic and political powers along with the
United States and Europe. If a customs union develops in Asia, we could see three major trade
blocs in the world within the near future.

In contrast, Canadas share of global GDP is less than 3 per cent, and will continue to decline in
the absence of proactive measures. Living standards in Canada measured in GDP per capita
terms are less than four-fifths of US levels. Canada is in 10th spot among OECD countries in
purchasing power parity behind Norway, Ireland, the Netherlands, Denmark and Australia.
The living standards gap stems from lower Canadian productivity on that indicator, Canada
ranks 20th among OECD countries. Canada also ranks 13th among OECD nations in the
contribution that information and communications technology makes to productivity. While
many people fear the rising import competition from China, it is largely because of these cheap
imports that for the first time in recent history, we have had full employment with no inflation.
We are at a pivotal moment in history. The Chinese have a word for crisis: Wei ji. Literally
translated, it means: danger/peril opportunity.
Responding to these massive global transformations will provide Canada with both challenges
and opportunities. It requires fundamentally changing our mindset reinventing Canadian trade
policy to reorient ourselves to the new realities. We have a tremendous opportunity to develop
closer economic, business and political ties with Asia to expand our horizons beyond the North
American market. We need to re-focus our trade policy from its current emphasis on exports, to
opening up Canada to imports so that we can improve productivity, add value and re-export to
the rapidly growing markets in Asia and around the world. There are real opportunities the
time is to act is now, but we need to act quickly and decisively, or the window of opportunity will
close.
There is a pressing need to re-energize and reinvigorate Canadian trade policy through engaging
collectively in strategic medium and long term thinking about where we are as a country and
where we want to go. Governments cannot do this alone, we need to work together: the private
sector, governments (federal and provincial) and Canadas top research institutions to find and
assert our new place in the world economy.
Our Recommendation or What Should Canada Do to Respond to these Challenges?
Trade policy is commercial policy. In addition to tariffs and other border measures, rules and
regulations (non-tariff barriers such as technical barriers, standards, and certification
mechanisms) are government measures that affect trade. Moreover, trade is not simply about
exports and imports of manufactured and agricultural goods.
Foreign direct investment including integrative trade and intra-firm trade is becoming
increasingly significant. Services trade, including the movement of persons, is also growing
and yet, we do not have accurate methods to measure flows of services and investment and as a
result, do not have good statistics on the shares of trade that they represent.

Canada need to do to re-invent or re-energize Canadian trade policy. First, Canada can start with
doing some longer term strategic thinking. Second, Canada recognize that our domestic
regulatory regimes affect trade and take steps to reduce our internal barriers.
Canada trade policy has to be based on, and reflect, our domestic economic strategy, a strategy
that will increase our productivity maintain our competitiveness, and increase our investment .
Achieving an open economy
Achieving an open economy (free trade) in Canada! While the trend elsewhere in the world Europe, Asia - East to the free movement of goods, capital and people, in Canada, we are half a
century back. British Columbia and Alberta have made a great first step with the new TILMA,
which provides a model for other provinces. How can we expect to remain competitive in the
new global economy if we do not get serious about removing interprovincial trade barriers?
Improving economic integration:
Deepening and improving economic integration within North America. We need to take NAFTA
to the next level, including by taking advantage of value chains within North America to export
to the rest of the world.
Removing restrictions on foreign direct investment:
Removing restrictions on foreign direct investment and reducing rules and regulations that
restrict competition
Cut the tariffs and Borders:
Cutting the applied rates of tariffs and reducing the border measures we use
Improving domestic customs and port procedures
Improving domestic customs and port procedures, reducing inspection and other delays, allowing
goods to move more freely across the borders.
Harmonization or mutual recognition of standards and regulatory requirements
Harmonization or mutual recognition of standards and regulatory requirements. We need to do
this across the provinces, but also with the United States and Mexico.

Reduce barriers

Canada's restrictive immigration system is a major obstacle to companies looking to relocate

staff across borders. And in a time of labor shortages, particularly in the western provinces
booming, allowing for accreditation of foreign professionals and the simplification or easing of
visa requirements, should be a major priority. Governments do not negotiate. People and
businesses do, and we need to find ways to make the cross-border movement of goods, services
and more efficient and less expensive people.
Tax:
Reduce the tax burden on Canadian businesses so that they have more money to invest and
increase incentives for companies to invest in research and development. If we reduce tariffs,
how can we offset the loss of revenue? We need to reduce inconsistencies in our tax systems that
create unexpected obstacles to business.